The Internet of Things market to reach $8.9 trillion by 2020

FRAMINGHAM, USA: International Data Corporation (IDC) expects the Internet of Things(IoT) technology and services spending to generate global revenues of $4.8 trillion in 2012 and $8.9 trillion by 2020, growing at a CAGR of 7.9 per cent.

The IoT represents a new construct in the information and communications technology(ICT) world that is occupying the minds of IT vendors, service providers, and systems integrators as it represents huge potential for new streams of revenue and new customers.

Some enablers to the rise of IoT include:

• Ongoing development of smart cities, cars, and houses

• Enhanced connectivity infrastructure

• An increasingly connected culture

Even though there is growing demand for the IoT, there are still several factors inhibiting growth of this market. Some of these challenges are on the supply side, including lack of standards, global scalability, and a nascent ecosystem for application development. On the demand side, the challenges include lack of awareness and other IT/mobility priorities.

Despite these challenges, IDC expects the installed base of the Internet of Things will be approximately 212 billion 'things' globally by the end of 2020. This will include 30.1 billion installed 'connected (autonomous) things' in 2020. This is largely driven by intelligent systems that will be installed and collecting data - across both consumer and enterprise applications - by the end of the forecast period.

"It is important to remember that while the market for the Internet of Things is still in its infancy, there is a long legacy of autonomous wired connected things. The enabler for increased growth over the forecast period is the pervasiveness of wireless connectivity and ubiquitous access to the Internet regardless of location," said Carrie MacGillivray, Program VP, Mobile Services, M2M and Network Infrastructure.